News Release

Cash flow from operations of $188 million in second quarter and
$415 million year-to-date

Net loss per share, including charges, of $0.52 in quarter; $0.00
earnings per share excluding charges

EBITDA of $1.65 billion before charges for the 52 weeks ended
September 8, 2012

Debt reduction anticipated to be in the range of $400 to $450
million for the year

New $1.65 billion asset-based revolving credit facility and $850
million term loan completed

Company provides update on strategic review

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 18, 2012--
SUPERVALU INC. (NYSE: SVU) today reported second quarter fiscal 2013 net
sales of $8.0 billion compared to $8.4 billion last year. The net loss
for the second quarter totaled $111 million, or $0.52 per diluted share,
including predominantly non-cash net charges of $111 million after-tax,
or $0.52 per diluted share. These net charges are comprised of
intangible asset impairment charges ($45 million after-tax, or $0.21 per
diluted share), charges related to the previously announced store
closures net of a gain on sale of assets ($25 million after-tax, or
$0.12 per diluted share), other asset impairment charges ($23 million
after-tax, or $0.11 per diluted share), the write-off of unamortized
costs related to the senior secured credit facilities which were
replaced by the recent debt refinancing ($14 million after-tax, or $0.06
per diluted share), and other employee-related costs ($4 million
after-tax, or $0.02 per diluted share). When adjusted for these items,
second quarter net earnings were $0.00 per diluted share compared to $60
million, or $0.28 per diluted share last year. [See table 1 for a
reconciliation of GAAP (actual) and non-GAAP (adjusted) results
appearing in this release]. Year-to-date net cash flows from operating
activities were $415 million and EBITDA before charges for the 52 weeks
ended September 8, 2012 was $1.65 billion.

“We have accomplished a number of important steps since I became
president and chief executive officer mid-way through the second
quarter, including the successful refinancing of our credit facility,
restructuring our executive leadership team, and announcing the closure
of 60 stores,” said Wayne Sales, SUPERVALU’s president, chief executive
officer, and chairman. “Our team is aggressively focused on four key
strategic imperatives necessary to improve our business: driving
profitable retail sales, growing Save-A-Lot, building our network of
successful independent retailers, and reducing costs. I am excited by
the progress we have made in defining our key strategies and specific
initiatives within each segment of our business.”

Sales continued, “We recently completed our price repositioning at
Jewel-Osco and are pleased with the initial results. Price is only one
part of an overall plan to build traffic and drive customer engagement.
However, as we measure these results, we are also assessing our on-going
approach to price investments, our value proposition and how we go to
market. As such, the timing of repositioning half our stores will extend
past the end of fiscal 2013. At the same time, we are moving quickly on
initiatives that will remove significant cost from our business, efforts
that will make us more competitive in the future. And, although we have
much to do, I am encouraged every day by the quality of our team members
and their commitment to our success.”

“I am pleased that the Company continues to generate substantial cash
flow. Year-to-date, we have generated more than $400 million in cash
flow from operations and, including the proceeds from asset sales, will
generate between $900 and $950 million in fiscal 2013. We will use this
to reduce our outstanding debt and keep our stores fresh and appealing,”
concluded Sales.

Second Quarter Results

Second quarter net sales were $8.0 billion compared to $8.4 billion last
year, a decline of 4.6 percent. The decrease in net sales primarily
reflects both a decline in identical store sales and the disposition of
a majority of the Company’s retail fuel centers which contributed $158
million in sales in the second quarter of fiscal 2012. Identical store
sales were influenced by the stressed consumer, the competitive
environment, and continued investment in achieving competitive pricing.

Gross profit margin for the second quarter was $1.72 billion, or 21.4
percent of net sales, compared to $1.87 billion or 22.2 percent of net
sales last year. The decrease in gross margin as a percent of net sales
reflects the negative rate impact from additional promotional activity,
an increased level of continued investment in competitive pricing, and a
change in business mix which was partially offset by the rate benefit
from lower fuel sales (approximately 30 basis points) and a lower LIFO
charge.

Selling and administrative expenses in the second quarter were $1.69
billion, or 21.0 percent of net sales, including $87 million in net
pre-tax charges primarily related to store closures, asset impairments,
and employee-related costs partially offset by the gain on sale of
assets. Excluding these items, selling and administrative costs were
$1.60 billion, or 19.9 percent of net sales, including an approximate 30
basis point negative impact from lower fuel sales. In the second quarter
of fiscal 2012, selling and administrative costs were $1.66 billion, or
19.7 percent of net sales last year. The 10 basis point decrease in the
adjusted selling and administrative expense rate as a percent of net
sales in the second quarter of fiscal 2013 reflects a change in business
mix which was partly offset by the impact of higher corporate reserves
related to surplus properties.

Net interest expense for the second quarter was $141 million and
included $22 million in pre-tax charges related to writing-off the
unamortized loan costs associated with the Company’s previous senior
secured credit facility. Excluding this charge, net interest expense was
$119 million. In the second quarter of fiscal 2012, net interest expense
was $120 million. During the quarter, the Company refinanced its senior
secured credit facilities with a $1.65 billion asset-based revolving
credit facility and an $850 million term loan, secured by a portion of
the Company’s real estate and equipment.

SUPERVALU’s income tax benefit was $71 million, or 38.8 percent of
pre-tax loss, for the second quarter, compared to income tax expense of
$36 million, or 37.4 percent of pre-tax income in last year’s second
quarter.

Diluted weighted-average shares outstanding for the second quarter were
212 million shares compared to 213 million shares last year. For the
second quarter of fiscal 2013, diluted loss per share is computed using
the basic weighted-average number of shares outstanding and excludes all
outstanding stock options and restricted stock as their effect is
anti-dilutive when applied to a loss. As of October 12, 2012, SUPERVALU
had 214 million shares outstanding.

Retail Food

Second quarter Retail Food net sales were $5.20 billion compared to
$5.61 billion last year, a decline of 7.3 percent, primarily reflecting
identical store sales of negative 4.3 percent and the disposition of a
majority of the Company’s retail fuel centers which contributed $158
million in sales in the second quarter of fiscal 2012.

Retail Food operating loss was $83 million and included $142 million in
net pre-tax charges related to intangible and other asset impairments,
previously announced store closures and employee-related costs which
were partially offset by the gain on sale of assets in conjunction with
the previously announced store closures. Excluding these items, Retail
Food operating earnings were $59 million, or 1.1 percent of net sales.
For the second quarter of fiscal 2012, Retail Food operating earnings
were $127 million, or 2.3 percent of net sales last year. The change in
Retail Food operating earnings as a percent of net sales was primarily
due to increased promotional activity, an increased level of continued
investment in competitive pricing, and the deleveraging impact of
negative identical store sales which were partially offset by cost
reduction initiatives and a lower LIFO charge.

Save-A-Lot

Second quarter Save-A-Lot net sales were $973 million compared to $972
million last year, an increase of 0.1 percent, reflecting the benefit
from 47 net new stores being operated at the end of the second quarter
of fiscal 2013, offset by the impact from network identical store sales
of negative 3.7 percent.

Save-A-Lot operating earnings in the second quarter were $18 million and
included $16 million in pre-tax charges primarily related to store
closure costs. Excluding these costs, Save-A-Lot operating earnings were
$34 million, or 3.5 percent of net sales. For the second quarter of
fiscal 2012, Save-A-Lot operating earnings were $50 million, or 5.1
percent of net sales last year. The decline in operating earnings as a
percent of net sales was primarily attributable to lower gross margin
rates attributable to competitive price investments and additional
administrative costs to support its growth strategy.

Independent Business

Second quarter Independent Business net sales were $1.87 billion
compared to $1.85 billion last year, an increase of 1.1 percent,
primarily due to higher sales to existing customers.

Independent Business operating earnings in the second quarter were $50
million, or 2.7 percent of net sales, compared to $56 million, or 3.1
percent of net sales last year. The decline in Independent Business
operating earnings as a percent of net sales was primarily attributable
to gross margin investment.

Cash flows

Year-to-date net cash flows from operating activities were $415 million
compared to $580 million in the prior year. Year-to-date net cash flows
used in investing activities were $307 million compared to $203 million
last year, reflecting higher payments for capital expenditures.
Year-to-date cash flows used in financing activities were $117 million
compared to $334 million last year, reflecting a higher level of debt
reduction in the prior year.

Outlook

The Company currently expects debt reduction for fiscal 2013 to be in
the range of $400 to $450 million. Cash capital spending is projected to
be in the range of $450 to $500 million, including expenditures for
technology, maintenance of fleet and facilities, new Save-A-Lot stores,
and approximately 40 store remodels.

Strategic Review Update

The Company’s previously announced review of strategic alternatives is
proceeding. The Company has received a number of indications of interest
and is in active dialogue with several parties. There can be no
assurance that this process will result in any transaction or any change
in the Company’s overall structure or its business model.

Conference Call

A conference call to review the second quarter results is scheduled for
9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com
(click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com.
To access the website replay go to the "Investors" link and click on
"Presentations and Webcasts."

About SUPERVALU INC.

SUPERVALU INC. is one of the largest companies in the U.S. grocery
channel with annual sales of approximately $35 billion. SUPERVALU serves
customers across the United States through a network of approximately
4,400 stores composed of 1,099 traditional retail stores, including 797
in-store pharmacies; 1,341 Save-A-Lot stores, of which 943 are operated
by licensee owners; and 1,950 independent stores serviced primarily by
the Company's food distribution business. SUPERVALU has approximately
125,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995.

Except for the historical and factual information contained herein,
the matters set forth in this news release, particularly those
pertaining to SUPERVALU’s expectations, guidance, or future operating
results, and other statements identified by words such as "estimates,"
"expects," "projects," "plans," and similar expressions are
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including
competition, ability to execute initiatives, substantial indebtedness,
impact of economic conditions, labor relations issues, escalating costs
of providing employee benefits, regulatory matters, food and drug safety
issues, self-insurance, legal and administrative proceedings,
information technology, severe weather, natural disasters and adverse
climate changes, the continuing review of goodwill and other intangible
assets, accounting matters and other risk factors relating to our
business or industry as detailed from time to time in SUPERVALU's
reports filed with the SEC.You should not place undue reliance
on these forward-looking statements, which speak only as of the date of
this news release.Unless legally required, SUPERVALU undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise.

(2) Retail Food operating loss for the second quarter ended
September 8, 2012 includes $74 of intangible asset impairment
charges, $38 of asset impairment charges, $39 of charges for
previously announced store closures, and $4 of multi-employer
pension withdrawal, offset in part by $13 in gain on sale of assets
in conjunction with the announced store closures.

(3) Save-A-Lot operating earnings for the second quarter ended
September 8, 2012 includes $16 of charges for previously announced
store closures.

(4) Corporate operating loss for the second quarter ended September
8, 2012 includes $3 of severance.

(5) Interest expense for the second quarter ended September 8, 2012
includes $22 for the write-off of unamortized costs related to debt
which was replaced as a result of the recent debt refinancing.

(2) Retail Food operating loss for the fiscal year-to-date ended
September 8, 2012 includes $74 of intangible asset impairment
charges, $38 of asset impairment charges, $39 of charges for
previously announced store closures, and $4 of multi-employer
pension withdrawal, offset in part by $13 in gain on sale of assets
in conjunction with the announced store closures.

(3) Save-A-Lot operating earnings for the fiscal year-to-date ended
September 8, 2012 includes $16 of charges for previously announced
store closures.

(4) Corporate operating loss for the fiscal year-to-date ended
September 8, 2012 includes $3 of severance.

(5) Interest expense for the fiscal year-to-date ended September 8,
2012 includes $22 for the write-off of unamortized costs related to
debt which was replaced as a result of the recent debt refinancing.

The measures and items identified below should not be considered an
alternative to any GAAP measure of performance or liquidity.
Management believes the measures and items identified below are
measures of performance and important measures of liquidity. The
items below should be reviewed in conjunction with SUPERVALU Inc's
financial results reported in accordance with GAAP.

(1) Store closure and other impairment charges, net of gain includes
a gain on the sale of assets in conjunction with the announced store
closures of $13 for the 52 weeks ended September 8, 2012 and a gain
on the sale of Total Logistics Control of $62 for the 52 weeks ended
September 10, 2011.

(2) Interest expense for the 52 weeks ended September 8, 2012 is
exclusive of the unamortized financing cost impairment charge, which
is reported in Store closure and other impairment charges, net of
gain above.